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Are We a Suitable Example for a 
Younger Republic? 

By THOMAS SAWYER SPIVEY 



An open letter replying to an article which recently 

appeared in the Washington Post, entitled, 

^'America a model of Argentina,'' by 

Dr. C Pellegrini, ex-President 

of the Argentine 

Republic* 



(Copyright, 1905, by Thomas Sawyer Spivey 



Sir: 

I have read with pleasure and profit your beautiful essay 
entitled, ''America a Model of Argentina." Inasmuch as 
you have freely commented upon my country in favorable 
and unfavorable terms, I presume to take your article for 
my text and beg to exercise the inspiration it gives me to 
write something, along these lines, which might be interest- 
ing to your people. I hope you will not feel offended. 

By attempting to comment on your paper, I am aware 
that I impose upon myself a task which may lay me open 
to the accusation of unwarranted criticism. Therefore, I 
hasten to say in advance that I hope to be acquitted of 
any such purpose, if anything I may say seems to be 
seriously contrary to your views — we are not in debate. 
You may be pleased that I disabuse your mind of some 
errors in beliefs. 



2 

I am quite sure you will forgive me when you learn that 
I fully agree with you in most of those things essentially 
complimentary to your people, and when you find that I 
roundly scold my own country for manifest shortcomings. 

The theme, itself, is inspiring. You grasp this spirit, as 
is evidenced by your eloquent and poetic treatment of the 
subject. Your beautiful diction, philosophic reasoning and 
vivid descriptions are quite sufficient to prove that you 
have experienced the rare and exquisite pleasure which 
comes with the ecstasy of inspiration while writing upon a 
favored theme. 

These things are the pleasures of enthusiasm. But 
there is a never-failing sign you betray, which is the bub- 
bling over of the heart under such a spell — you are too 
generous. You give too great credit where credit is not 
due, and in this over-zealous generosity you lose sight of 
philosophy and the underlying principles of things. 

Great and inspired men are always too generous in their 
praise of those things which they desire to please, or which 
please them. 

This fault, and it is a fault — but one easily condoned — 
is not engendered by prejudice or undue bias, but is wholly 
spontaneous, coming directly with sincere motives. 

This may be forgiven in a writer of the Latin race — they 
write like they love — ardently. 

You culminate your generous praise of the United States, 
and applause of its people, by announcing that our institu- 
tions should be taken as models by Argentina. 

You will surely acquit me of any purpose of seriously 
criticising your article if I differ with you, in a friendly spirit, 
on this point. 

The "get there," "break the record" qualities which you 
so aptly describe, in our "hustle and bustle" for wealth are 
truly American, but abhorrent to the educated, thinking 
people. 



These odious methods are new inventions, harmfid to 
the moral stamina of the nation and recognized as viola- 
tions of the laws of good and lasting government. More- 
over, there are no laws in nature to justify them. 

It tends to foster a condition which raises every man's 
hand against his brother, where almighty wealth is at stake. 

It is the germ of that sentiment and passion which 
involves nations in war, when the whole nation becomes 
imbued with a greed and desire for gain, regardless of loss 
and pain to others. It is then a national disease. 

There is no deep sympathy in this new creed, therefore 
it should not be assimilated in the codes of other nations. 

It is a good thing to know that our own government 
recognizes the baneful effects of ultra-commercialism and 
is attempting to check its ravages. But it has waited too 
long. The constitution has been weakened by its encroach- 
ments. 

Ultra-commercialism to-day holds a stronger grip upon 
the world, and especially upon this country, than religion, 
or the fear of God or the devil ever did. 

Gold is our God and our worship of it wholly sincere. 

The pride of our nation is the pompous pride of com- 
mercial achievements. I do not mean, by ultra-commer- 
cialism, the operations of established business institutions, 
I mean the speculative influences of so-called modern high 
financering, which converts nothing into something. 

You advance certain propositions regarding your own 
race, quite worthy of deep and serious consideration. 

You accredit to the Latins the civilizing of the world. 
This is true, the Latin race is the warm, flowing, expanding 
peoples. 

In nature the warmth thaws away the ice and snow of 
winter, that budding spring may unfold the beauties of the 
vegetable kingdom. 

It is the warmth which produces the flowing waters, and 
the mists, which cause things to mingle, then separate, each 



to assume its natural position, according to its specific 
gravity. 

It is the principle of love which causes the activity- 
essential to bring forth good fruits. 

The Latins occupy this position in the human affairs 
which disperse men over the face of the earth. 

They penetrate to the heart of things and cause them to 
expand and grow. It is in this generous, expansive nature 
that the Latin expresses his highest enjoyment. In his 
passions and his activity he does things — and these things 
more often dissipate his vitality and energy, than they con 
serve them. He scTatters his forces and falls an easy prey 
to the more concentrated forces and conservatism of the 
cold unyielding Anglo-Saxons, who represent the cold 
principle — always trying to concentrate and control energy, 
that it may not be wasted, but conserved and utilized for 
their own selfish, ungenerous, unloving ends. 

Pray, which shall we do, freeze the w^arm, loving Latin 
people or thaw the cold, calculating Anglo-Saxon? 

Or is it possible to amalgamate them into the new and 
perfect race? This wholly depends upon the position upon 
the earth the nation occupies. In a cold climate, cold 
devours heat. In a warm climate, warmth devours cold. 
In a temperate climate things flow together and seek a 
common level. 

By a close study of the United States, it must be candidly 
admitted that we have not formed that "homogeneous 
solid," of which you speak so eloquently. Unfortunately 
you have only been brought in contact with that element 
which reflects the good qualities with which, you say, the 
American people is "overflowing." 

You admire our "audacity," while you should know, 
as a philosopher, and a scholar, that "audacity" is one of 
the most ungenerous and dangerous attitudes we have 
assumed, if we view the greatness of a nation from the 
standpoint of right and just principles. 

Webster's definition of "audacity" is "impudence." 



It is the applause of our ''audacity" that has turned the 
head of the over-grown boy — the "colossus in the full vigor 
of his youth." 

You unconsciously strike the keynote of our present 
attitude in the world of nations. 

The strong independent youth does not reason, he 
depends upon his strength and courage — we have both — 
he plunges ahead in the race; exhausts his resources; wastes 
his energy, and drops by the wayside, while the older and 
better trained athlete reserves his strength for the finish. 

The representative Anglo-Saxon race does not recognize 
the people of the United States as a part of it, but it does 
recognize us as that thoughtless youth, burning up his 
vitality, and patiently awaits the finish, the weakness which 
follows the excesses of youthful dissipations. 

The "bluster," "brag," "noise" and confusion engendered 
by undue praise, has made the United States the most 
uncertain, unstable and dangerous experiment of the civiliz 
ing periods. 

We have such vast natural resources, our energy knows 
not whither to turn. Our playthings are so numerous and 
varied, we are never satisfied, but jump from one to another, 
running after every expensive fad presented. 

Consequently, we are the most wasteful nation on the 
face of the globe. Our Congress unblushingly makes 
appropriations which anticipate a deficit of a tenth of a 
billion dollars, knowing that a generous people will find a 
way to pay, or that coercive methods will produce it. 

We mingle the cold with the hot, as we mingle the Latin 
with the Saxon; the Indian -with the negro and the Mongo- 
lian with the Hindoo. 

We instinctively try to put out the torturous conflagration 
without reasoning why we do it. We use ice in everything. 
As the Latin youth loves to cool his ador in the atmosphere 
of the cold Anglo-saxon women, we love to mingle broken 
ice with our licpiciir. 



6 

Notwithstanding the ulterior feehng that we are burning 
up, we go on, heaping the fuel higher, that the "Phoenix" 
which we hope may rise out of our ashes may be a big, 
strong, healthy bird, forgetting, in our neglect of philosophy 
and reason, that the size and constitution of the bird depends 
upon the inherent potentialities within the microscopic germ 
of the egg and not upon the size of the nest or the materials 
of which it is composed. 

A liberal man, who habitually views such things through 
the generous eye of diplomacy, may feel shocked at these 
radical views. One may appear to be unpatriotic. It takes 
a brave and fearless man to be truly patriotic in these 
strenuous times. 

The accusation of being unpatriotic is a deadly weapon 
in the hands of our demagogues. It is always the strongest 
weapon of sophistry, yet the simple armor of candor and 
truth turns it easily. 

One of the saddest conditions now prevailing in the 
United States is that which bids us halt before speaking the 
plain truth, to consider what offense, political or commer- 
cial, frank avowal may give. It is true in the limiting of 
debate in our Congress and in the daily intercourse of our 
people, few men dare let their conscience wholly guide 
them. 

No governmental principle ever contemplated control of 
men's souls, yet present conditions as utterly own the souls 
as they do the bodies of men. 

If we are correct in the conduct of our institutions, then 
why the '* big stick" principle? If there is no one to be 
chastised occasionally, why the "switch," or "ferule?" 

Is the old world more unruly than the new ? 

Perhaps the "big stick" is only intended to frighten 
other nations, like the hideous Chinese Gods and Idols. Ii 
this be true, then, this youthful country is up to some mis- 
chief which is offensive to others or else, the child of the 



wilderness is beginning to teach and dictate to the parent 
of the old world. 

Now we come to the essence of the whole question; the 
proposition that the United States is a good example for 
the Republic of Argentina to follow. 

I admit, 'tis true, every man's writings may be warped 
and used against him in argument, but as it would be 
manifestly impolite for me to assume the attitude of argu 
ment, in a friendly review of your article, I must apologize 
for referring to certain incompatibilities in order to emphasize 
what I desire to convey. 

You begin your article by saying that the Latins 
"civilized the world," and that the race is not "degenerat- 
ing." 

If this be true, and we are not going to question it, 
then it throws the "model," which you select, into a 
dubious light, viewed from the standpoint of principle. A 
fundamental thing must degenerate, if it partakes of the 
eccentric characteristics of a composite body, because, by 
so doing it loses its individuahty. Pure gold is better than 
an alloy. 

Nature always puts us right when we earnestly solicit 
her aid. 

I will attempt to prove to you that nature, herself, is 
opposed 'to your proposition, and, later, will show that 
nature cannot be fooled. 

We take a sound beam of wood and analyze it carefully 
to find that its strength and stability rest upon the fact that 
it is composed of harmonious elements, the correspondence 
of which maintains balance, the intrinsic purpose of the 
combination is stability and strength. As long as fermenta- 
tion is prevented, and this primary balance remains, the 
beam will remain sound and immune against decay. 

We take a second beam, in a process of decay, and an 
analysis shows quite a different state. Hetrogeneous 
elements are struggling to dissipate the fibre by fermenta- 



tion, or decomposition — elements wholly different from 
those found in the sound beam. The beam is what we 
call rotten. Very often this decay is found most pro- 
nounced at the heart or core. The process of decay dis- 
sipates energy and strength, and attempts to first weaken 
the heart which supplies the nourishment, which retards 
decomposition. 

Now, here is a definite example of the necessity to con- 
serve energy. It is the perfectly understood and balanced 
energy which holds the fibres in the sound beam together 
and prevents decomposition. 

It is the dissipation of energy, the mis-appropriation of 
energy by the several foreign elements in the rotten beam 
which hastens decomposition and takes the strength and 
solidity out of it. 

Without contact, these beams cannot influence each 
other. 

Suppose we should desire to strengthen the rotten beam 
by an alliance with the sound one. We bind them 
together. 

As a whole, the combination is temporarily stronger, 
but see what nature thinks of the union. The sound beam 
was strong and perfect, standing alone, but upon assuming 
the burden of the unsound one it begins to yield up the 
energy which it needed for its own harmonious balance. 

The gases in the unsound beam permeate the sound 
tissues, stirring up strife between the elements, and con- 
sume and appropriate the heat and energy thus engendered, 
and decomposition is set up in the sound beam. There 
has, at the same time, only been a slight, if any, abatement 
in the decay of the rotten beam. It has only transmitted 
the disease to the healthy tissues of the sound one. The 
unsound beam is never redeemed by such contact; the 
germ of decay always seizes upon and destroys healthy 
tissue. 



9 

Let us assume that the Argentine RepubHc, with its 
basic race, is that beam with the balanced elements, with 
the one fixed desire for a stable government. 

Then let us assume that the United States, with its 
hetrogeneous elements, is the beam in which fermentation 
is generating too great heat and waste of energy. 

Does it not necessarily follow that, if your people should 
imbibe and assimilate the hetrogeneous ideas, the gases of 
fermentation, set up by enumerable elements, struggling 
and fighting for energy, or money, which represents energy, 
they will be seized with exactly the disease which is con- 
suming us, the craze for money, ultra-commercialism? 

This is our national disease. It is a thousand times more 
fatal to a nation than yellow fever, and, singular to say, 
the alleged basis of it is yellow gold. 

If you will analyze the South American revolutions you 
will find, in practically every case, that it was the corrod- 
ing influence of gold that started it. 

The Argentine Republic is composed, chiefly, of Latins, 
and, to avoid argument, we will say the Latins govern. It 
is proposed that the policy of the younger republic shall 
be patterned after that of a nation composed of so many 
different peoples that, it is impossible to enumerate them. 
So new is this conglomeration, the different nationalities 
still retain in full, their distinctive race colors. So numer- 
ous are the people of each nationality and so inter-mingled 
are they in power, it is difficult to say which nationality 
is the chief ruling force. The Anglo-Saxon though rules 
the finances. 

It is past belief that such a mass can be reckoned as 
other than a composite nation of people, with sentiments 
and ideas of government in confusion. It is equally absurd 
to say that a definite and distinct type of composite Ameri- 
can can be distinguished, one representing an average. 

The germ of ''get rich quick and return home" is in all, 
alike, no matter what the nationality. This wholly accounts 



10 

for the commercial greed of the American people. To 
those who left relatives in their native country, "home" 
means to return there. To those who have permanently- 
settled in America, "home" means "retirement," a cessa- 
tion of physical labor. In either event, it means a with- 
drawal of energy from the general strength of the nation. 
It is this ceaseless influence that has engendered that awful 
greed and desire for sinecure office in the United States. 
The taint has weakened the responsibility of citizenship. 

We will go no further in this direction. There are so 
many valid reasons why the people of a younger republic 
should not wholly adopt our institutions as a pattern, I 
could not, in a brief article, attempt to enumerate them, 
but should I be able to point out one primary reason which 
is so vital, as to overtop all others, that will be quite 
sufficient. 

There is but one truly great stone in the foundation of 
our nation — wealth. It is the basis of all we do, absolutely 
all — it is wholly controlled by the Anglo-Saxon race — there- 
fore if you adopt our methods, again, you will be permit- 
ting the Anglo-Saxon race to set the policy for the Latin 
race. That policy is the destructive element, ever keeping 
up the fermentation that releases energy of the masses to 
be appropriated by the limited few. 

Now, I will tell you why it would be no less than criminal 
for any new republic to emulate our political institutions. 
Gold is the basis of international exchanges only, notwith- 
standing it is assumed to be the basis of our circulating 
medium. There can never be a sufficient amount of gold 
for a safe basis of our medium of exchange. 

The basis of all that we do in this country is the interest 
bearing bond. It represents the accumulated energy of 
human effort and in this form is most easily confiscated or 
counterfeited. 

This creation of bonds is a craze. So many billions of 
bonded indebtedness are floating about that, instead of 



11 

repudiation manifesting itself in the direct way, it is surrep- 
titiously shown in the shrinkage in the face value of tlie 
bonds. The depreciation of one very important set of 
bonds, usuall creates a similar weakness in many others, so 
intimately connected are all the bonds with the financial 
pulse of the nation. 

Periodical panics in the stock markets are due to colassal 
repudiation and readjustments of accounts represented by 
bonded indebtedness. 

We are hopelessly and eternally committed to the bond, 
consequently, involved to so great an extent that the aver- 
age human mind cannot grasp its meaning. 

Taken as a whole, the bonded indebtedness of the nation, 
represented by industrial bonds; nmnicipal bonds, of an 
endless variety, comity bonds, state bonds and government 
bonds aggregates a total, appalling to the world. 

It is utterly impossible for the nation to make good on 
the interest, from time to time, then to save our credit, and 
prevent utter ruin, and open repudiation, refunding measures 
are adopted, lower rates of interest asked, and this act is 
pointed to with pride as evidence of the solidity of our 
institutions, and the stability of our credit. It is essential 
to maintain our credit, because it is the underlying princi- 
ple of the whole system. 

Now add to this burden, taxation in every form and the 
actual cost of living and you will find that the people have 
no time to think of philosophy or to reason. It is physical 
action alone that will keep them from starvation. 

This craze did not originate with the people; the govern- 
ment first set the example. Our financial system first 
began as an experiment and ended by the surrender, by the 
government, of the sole constitutional right to make the 
money which should be the medium of exchange. Now, 
the government prints the blanks and the signature of the 
bank officials convert it into money. The government 



12 

issues the volume countersigned in blank like signing a 
book full of checks in advance to be filled up by a clerk. 

Ihe government bond being the basis of our circulating 
medium, from time to time, it becomes essential to increase 
the national debt to make more bonds, in order to increase 
the volume of circulation. 

The ''Spanish-American War" was the last excuse for 
increasing the national debt. 

We can now understand the danger of this policy. The 
people will not graciously allow an issue of bonds in times 
of peace. 

War is a dangerous experiment. Then what reasonable 
and plausible excuse can be found for increasing our bonded 
indebtedness in the near future. 

There are but two possible ways and both of, these have 
been casually mentioned. The country is to be educated 
to one or the other. 

The one is "government ownership " of railroads. The 
purchase of these vast properties would involve a bond 
issue which would be appalling. " Government owner- 
ship," in itself may not be a bad thing, under right condi- 
tions. 

But, the purchase of these Roads at their inflated valua- 
tions would constitute one of the most colossal confisca- 
tions of property, by a few principal holders of railroad 
securities ever dreamed of 

The vakiation placed upon the properties, would be 
based upon their earning capacity at the time of condemna- 
tion. 

In anticipation of this, shewd financiers have purchased, 
almost wholly, these railroad stocks, then pushed up the 
freight rates to the very limit of endurance, and increased 
and watered the stocks to bring down the earning capacity 
to a reasonable percentage, in order to increase the bonded 
burden at the time of purchase by the government. The 
government bond which they would receive, in exchange 



for the railroad share, would, of course, give them a more 
stable and desirable security, because of its having behind 
it the whole earning capacity and property value of the 
nation. 

These new bonds will become the basis for new circula- 
tion, or medium of exchange. 

Thus, it may be seen, that the people will have been 
coerced into making a forced loan after having paid into 
the treasuries of these great railroads the exhorbitant freight 
rates which gave them their inflated valuation, based on 
earning capacity. This forced loan then becomes a further 
burden by being made the basis of the circulating medium, 
absolutely controlled by those who sold the railroads to the 
government. The money being wholly controlled by the 
bankers, its volume may be manipulated at will in order to 
give "bank credit" an advantage over actual money and 
compel the people to pay an interest of 4 to 6 per cent for 
the privilege of having a medium of exchange. 

The people exchange the control of the entire circulat- 
ing medium of the country for control of the railroads and 
a perpetual burden of debt. 

Now, which control would be the more valuable to the 
people ? 

This proposition will come before the people within a 
short time. The greatest revolution this nation will ever 
experience will be when the people awaken to the fact that 
they have been robbed of billions of dollars by private con- 
trol of the circulating medium which should be controlled 
by the government at no cost to the people. 

The other, and more dangerous plan of increasing the 
basis of circulation, is for the government to accept indus- 
trial, iimnicipal, county and state bonds from the banks as 
they now accept government bonds, in the purchase of the 
privilege of uttering money. This plan has been seriously 
advocated. A way may be found by which the govern- 



14 

ment may place its endorsement,' and guarantee, upon 
bonds issued by cities already groaning under a hopeless 
burden of debt. 

This is wholly impossible for the reason that the greatest 
financial scandal this country ever suffered was caused by 
a similar system. 

In the early history of our finances we had a system of 
State banks which issued what was called "wild-cat money." 

The danger of that system was in that there was no 
check to the volume of money issued and no two dollars 
had the same purchasing power. 

The State banks issued their own money and put into 
circulation endless volumes of it. It threw the country 
into a horrible state of financial anarchy and came near to 
disrupting the nation. 

The underlying purpose of all this was exactly the same 
as is the ulterior purpose of the present schemes, to shirk 
responsibility, and confiscate the energy of the people. 

There is no difference between "wild-cat money" and 
"wild-cat bonds," when the one is made the basis of the 
other. Therefore, when this proposition comes before the 
people they will again be face to face with the old time 
"wild-cat" financiering. 

To justify their control of the nation's money the holders 
of the government bonds advance this principle; we hold 
it as security for this vast loan to the people, as one nation 
seizes the revenues of another in the forced payment of a 
debt. They wipe out all previous questions as to the 
validity of the debt. 

This comes dangerously near to the principle of confisca- 
tion. 

Now, let me ask you, Dr. Pellegrini, this one question. 

Would you, in view of the foregoing, advise your people 
to adopt these methods ? 

If no, then wherein is this country a model for the 
Argentine Repubhc? 



15 

I believe the Latin carries within his own potentiaHties 
all the examples of good government, good civilization and 
good philosophy essential for his stability, comfort and 
happiness without experimenting with those of any other 
nation, if it be possible for him to shake off the ulterior ruling 
power of the Anglo-Saxon race which has taken perman- 
ent grasp upon the secret reins of international government. 
I have my doubts about the Anglo-Saxon's ever again 
losing this control. 

Look carefully to international law. That is the chain 
which is being fettered upon the Latin peoples. 

There is one thing which the Latin republics, of South 
America, should view with self gratulation; the awakening 
of a truly colossal "yellow peril" in Asia will compel a 
" Pan-American" alliance, sooner or later, for self protec- 
tion. 

The hundreds of millions of human electrons of Asia will 
soon, now, be engaged with their quick brains and nimble 
fingers, in doing all that we can do mechanically, and at one 
fifth the cost. It is the rising of the new sun of civilization 
on the shores of Eastern Asia. 

It remains to be seen whether we must, for a period, 
experience the darkness. Is the moon, the Anglo-Saxon 
race, to give us feeble light during our night; or will it 
desert us, to grope about, without wisdom, philosophy or 
reason until the far distant morn, when, again, the great 
and generous orb of day rises in our Eastern sky? 

This is the serious problem for the Latin race to con- 
sider, and begin to light up for the darkness of industrial 
night on the Western Hemisphere. 

Washington, D. C, 

March 4, 1905. 



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